Potential market

PART B: valorisation plan

SECTION I: The product

 

1a The innovation potential of this product is related to:

 

  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…
The product has not got significant innovation potential.

However its development is related to cost reduction – it can be offered at a price 3-4 times lower than that of imported analogues. The local market offers only imported similar products.

 

 

 

1b What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
The R&D team claims that in some aspects and quality parametres the LR-3 shows better performance than that of leaders on international markets. The protective layer by LR-3 has increased life – up to 5 years, in contrast to many other imported products where the protective layer last about a year on average. Similar quality is shown only by two leading companies – from Great Britain and Germany – but the price of their products is 3-4 times higher than that of the Bulgarian one.

 

 

 

1c What is the Unique Sales Proposition of the potential product?
The product does not offer major uniqueness in comparison to other analogues on the market. Its main market advantage is the combination of high quality and lower market price. Re quality advanteges – refer to p. 1b.

 

 

 

 

 

SECTION 2: The Market

 

2a What is the target market for the product?

National ¨

European ¨

Global ¨

Please describe the characteristics of your target market.

The target market could be initially the local market as the product’s main advantage is the lower price. The local market is characterised by its small size and comparatively low prices, low purchase capacity of end-users, especially in the recent years and now when the market is impacted by the international financial crisis.

 

The European market is a potential one but the export has to be justifies by additional market research in advance prior to taking any steps towards international markets.

 

 

2b How the product is characterized from the following options? Number of companies producing similar products in the field.

• Base – applied by all companies in the industry

• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

The product could take leading positions on the local market as it is offered at a considerably lower price than that of international leaders having at the same time equal quality parametres. There are many producers of similar products, but only a limited number is imported on the local market.

 

 

2c What type of market demand will be satisfied?

• Existing demand – the market is already developed

• hidden (latent) demand – the market has yet to be developed

The products satisfies existing market demand. The market for this product is already developed. The consumption of this product is in general limited due to the current stagnation of the market as well as by the comparatively high prices at which other analogical products are offered on the market.

 

2d What is the current stage of the product’s market life cycle?

• Implementation, implementation in production (leading to a radically new product offers)

• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

The market life cycle is mature. The product could replace other anaolgues mainly due to the combination of qood quality and lower price.

 

 

 

 

2e Strategic partnerships (existing or potential).
The Institute has already started identifying potential partners.

One strategic partner could be a spin-off company at the Technical University of Sofia, which has the technical capacity to introduce this in industrial production. They can also undertake the marketing of the product.

The other prospective strategic partner is a private company in the town of Yambol in South-East Bulgaria. Initial negotiations have been held with this company and the company has demonstrated interest in making industrial production of LR-3 and releasing it on the Bulgarian market.

 

 

 

 

SECTION 3: The Competition

3a What is the competition within your target market?
The target market is the Bulgarian market. It offers either similar products at low price but also at unsatisfactory quality, or products with good quality as that of LR-3 but at much higher price. There are no similar analogues from China on the local market.

If going on international markets, the competitive advantage there would be the lower price but prior to that international certification has to be obtained from an internationally certified chemical laboratory.

 

 

 

 

3b What competitive advantages will the introduction of the new product ensue?

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

The main advantage of the product is its lower price in combination with quality as good as that products by leaders on the European market.

 

 

 

 

 

3c Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

The R&D result provides opportunity for releasing the product on the market and becoming a price leader. The product is to be offered a the low price range on the local market.

For the European market the price range for probable export cannot be assessed at this stage. The product is not ready for export as it has no international certification obtained.

 

 

 

 

 

3d Potential products will be marketed:

• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)

• To markets operating on the principle of free negotiation between agents on the market

The product will be marketed on the market operating on the principle of free negotiation.

No particular regulations apply to the local market of this type of chemical products.

 

 

 

 

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